Apartment market may improve this year

The multifamily market may improve in 2013.

There could be an improved apartment sector for commercial property managers next year, as continued development may keep up with demand.

The apartment market may experience as much as 250,000 new units next year, according to National Real Estate Investor. This was the recent level of property development, but some industry members expect this to increase.

"Assuming current trends hold, over the rest of this decade, we will need at least 300,000 new apartments annually, and possibly as many as 400,000, to meet demand," Mark Obrinsky, vice president of research and chief economist for the National Multi Housing Council, told the news source.

Obrinsky noted further that demand is rising to a point not seen since the financial crisis, the news source explained.

While recovery can continue at 300,000 units per year, this could be more of a struggle if there are more developments. This means that 400,000 units per year could put a strain on the market unless overall economic growth picks up, the report added.

According to the Department of Commerce, the third quarter's Gross Domestic Product growth reached 3.1 percent, which was significantly higher than the 1.3 percent during the third quarter. Many experts anticipate this trend to continue in the future.

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